There was a time in our lives, when having an account on Facebook used to be a big deal for us! Remember that day, when you created Facebook account by telling wrong birth date. Time passed, and time changed, the company whose product used to be an achievement for us, its secrets started appearing in front of all of us! Such secrets, which no one knows. Facebook - a trillion dollar tech company, with 2.9 billion active users, is the world's biggest social media website. Company is growing, making a lot of money, profit is increasing every year, and investors are extremely happy! Mark Zuckerberg. Age - 38 years. Net worth - $98 Billions. The third richest man in this world. But today within just a year, Mark Zuckerberg's net worth reduced to $46 Billions.
Facebook is now Meta. And Meta's valuation, has come down from $1.17 trillion to $560 billions! And just a few days ago, Facebook fired more than 11,000 employees. Everything is over in one a pinch of time. What will happen to those people? Why did Facebook take such a terrible step? What's going on in the company, that no one knows. Is Facebook going to shut down?
This is the ultimate rise and fall of Facebook! The company that indirectly controls the world. Facebook is constantly loosing money! Even to such extent, that Facebook doesn't have money to pay their employees. Investors, instead of investing, are withdrawing their investments. And the most interesting part is, from July 2021 to July 2022, monthly actively users of Facebook, have increased by 40 millions. But, still the profit is down by 30%. But how? What's going on in the company, that in spite of increasing users, company is sitting on losses. Because, As awesome as things look from the outside in this company, they are even more terrifying on the inside! This story starts from 28 October, 2003. When Harvard's 2nd year computer science student made a social media site named 'facemash' for the students studying in his university. Idea becomes hit. And within two weeks, 430 students visit this website. But, the sad part was, the Harvard's administration got his website banned! Because according to them, all the photos which were uploaded on facemash, were hacked from the data center of the university. At that time, three students studying in that university, Cameron Winklevoss, Taylor Winklevoss, and Divya Narendra, together make a social media site named 'HarvardConnection'. And who was coding the website? Victor Gao. But due to financial problems, he had to stop.
Separation of Lanthanides/ Lanthanides and Actinides
Why is the Facebook meta failing?
1. Why is the Facebook meta failing?
There was a time in our lives, when having an account on Facebook used to be a
big deal for us! Remember that day, when you created Facebook account by
telling wrong birth date. Time passed, and time changed, the company whose
product used to be an achievement for us, its secrets started appearing in front of
all of us! Such secrets, which no one knows. Facebook - a trillion dollar tech
company, with 2.9 billion active users, is the world's biggest social media website.
Company is growing, making a lot of money, profit is increasing every year, and
investors are extremely happy! Mark Zuckerberg. Age - 38 years. Net worth - $98
Billions. The third richest man in this world. But today within just a year, Mark
Zuckerberg's net worth reduced to $46 Billions.
Facebook is now Meta. And Meta's valuation, has come down from $1.17
trillion to $560 billions! And just a few days ago, Facebook fired more than
11,000 employees. Everything is over in one a pinch of time. What will happen
to those people? Why did Facebook take such a terrible step? What's going on
in the company, that no one knows. Is Facebook going to shut down?
2. This is the ultimate rise and fall of Facebook! The company that indirectly controls
the world. Facebook is constantly loosing money! Even to such extent, that
Facebook doesn't have money to pay their employees. Investors, instead of
investing, are withdrawing their investments. And the most interesting part is,
from July 2021 to July 2022, monthly actively users of Facebook, have increased
by 40 millions. But, still the profit is down by 30%. But how? What's going on in
the company, that in spite of increasing users, company is sitting on losses.
Because, As awesome as things look from the outside in this company, they are
even more terrifying on the inside! This story starts from 28 October, 2003. When
Harvard's 2nd year computer science student made a social media site named
'facemash' for the students studying in his university. Idea becomes hit. And
within two weeks, 430 students visit this website. But, the sad part was, the
Harvard's administration got his website banned! Because according to them, all
the photos which were uploaded on facemash, were hacked from the data center
of the university. At that time, three students studying in that university, Cameron
Winklevoss, Taylor Winklevoss, and Divya Narendra, together make a social media
site named 'HarvardConnection'. And who was coding the website? Victor Gao.
But due to financial problems, he had to stop.
But, before going, Victor suggested team, that he knows someone who can do
this. He was none other than, Mr. Mark Zuckerberg. team shares his idea with
Mark. The idea was to build a social media website, which could be used by all
school and college going students. This meeting happens at the end of October
2003. And after that, by 1 December, Mark sent two emails to , which said that he
is eagerly interested in the idea, but due to some work, he is busy. 4th December
2003, team contacts again with Mark. And the reply came, I'm solving some
problem, I'll revert back soon. And things just went on. Team kept on following
up, and Mark kept ignoring. 14th January 2004, again a meeting happens
between Mark Zuckerberg and team. In which Mark shows doubt the viability of
Harvard Connection team. He says, this idea might not work, and I'm too busy to
work on it. I've got a lot of projects. But interestingly, right after one month, Mark
Zuckerberg launches the website named 'thefacebook'. The idea was same, only
3. name was different. 10th February 2004, Cameron Winklevoss sends a letter to
Mark Zuckerberg, in which it was written, that he is accused of contract breaching
and stealing of idea. A few months later, on 21st May 2004, Harvard Connection
team launched their website with name ConnectU. And, soon after, in September
2004, ConenctU filed a case on facebook and Mark Zuckerberg. When
investigation happened, it came to know, that there was no contract signed
between Mark Zuckerberg and Winklevoss. But, the question is when Facebook
was launched, at that time, Friendster, MySpace, ConenctU, and many more
similar websites were also launched. But what Facebook did so special, because of
which, today none of us even knows the name of these websites! Well... three
things!
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1. Fighting the Demographic Restrictions. Friendster was designed on the
principle of dominating the Asian market. But the problem was, at that time,
there was not much internet penetration in Asian countries. On the other hand,
Facebook was targeting western countries, where, by 2004, internet penetration
had come, and because of which, Facebook was rapidly gaining users.
2. Security and User Interface. The security of Friendster was very low. And the
user interface was filled with different colours, and making it super difficult to
use. On the other hand, Facebook, was comparatively less cluttery, and was very
simple to use. And third and most importantly, Staying away from anonymity and
diversification. Where, sites like MySpace use nicknames, and did everything to
boost their revenues. But Facebook allowed to keep your own name. Which
builds a network effect. You want to join Facebook, because you know, your
classmates are on Facebook. Year 2008, Facebook buyouts ConnectU in $65
millions. And from here starts, the actual story of Facebook. Because, this is how
it happens. We think different, but it turns out to be something else! By 2008,
Facebook was so big, that either it used to acquire its competitor, and if that's not
possible, they used to copy their main features. By 2012, Facebook had one billion
4. users. And everything was going so well, but by 2016, Facebook started to have
big problems. Platform had become so cluttery, that people started leaving
platform. Tons of fake accounts. And the more scary part, fake news. Facebook
was regularly getting summons from authorities. To counter fake news, Facebook
started a feature of flagging fake posts. In the same year, Facebook also launched
reactions, in which you can use various emojis along with like button. This was a
move by Facebook to understand the human behaviour, in a much better way.
But, it failed.
After this, you can think of, what happened with Facebook. Year 2018, a massive
data was breached in management consulting firm Cambridge Analytica. This
firm, through the application 'This is your digital life', by getting the personal data
of 87 million users, used to promote Trump in 2016 American Presidential
Elections. When the scandal broke out, whole world got shocked.
#deletefacebook started trending on twitter. And the share price of Facebook
went down by 40%. But interestingly, even after all this, Facebook survived but, if
you look very closely, today, the condition of Facebook is very bad. And this is
happening because of three reasons. No. 1 - Lack of quality users. Now look at
this very very carefully! According to July 2022, the population of world was 8
billion. In countries like Russia, China, Iran and North Korea, Facebook is
completely banned. So, the total population of all these countries, that is 1.7
Billion. Facebook can't cater to these people. On top of that, 1.1 billion are those
people, who are below 13. Facebook can't cater to these people also. And cherry
on the cake, 37% population of the world, doesn't have internet access. So, the
total non users of Facebook, are 5.1 Billion. And currently Facebook has 2.9 Billion
active users. So, Facebook is technically left with no more new users. Just have a
look, growth of users of Facebook, is hardly growing. Infact, its users declined in
2022. After this news came in market, its share price started declining. Because,
this was the first time in history, that there was decline in revenue and active
users. 2nd reason - Loss of Youth Appeal. 20's love the speed. When we're in our
20's, we love fast things. But if you look at Facebook user interface, because of
having so many things at one place, it has lost its quick responsiveness. So, it
5. slows you down. That's the reason, mostly users are not on Facebook. They're
either on Instagram or Snapchat because, these platforms are comparatively
more speedy. The average age of user of Facebook is 38 years, which is
approximately 7-9 years more than that of Instagram, and Snapchat. According to
the study of Pew research center, in 2014-2015, 71% US teens used to use
Facebook. But, by 2021, 32% US teens are using Facebook. In USA, most young
adults have agreed that, is for people of 40-50 years age, not for 20s and 30s. For
most adults, Facebook is boring, misleading and negative. In 2019, after spread of
fake news, people lost trust in Facebook.
According to Forbes, this time, the data of 267 million users was leaked. In which
their mobile numbers, and email addresses were included. In February 2021,
changes were made in the privacy policy of WhatsApp! Which said that Facebook,
will now be sharing its data with Whatsapp. And Whatsapp has a complete
different story, filled with a lot of lies and betrayals. And unfortunately, today,
mostly Facebook users are moving to Tiktok and Snapchat, and cherry on the
cake, if you observe very very carefully, out of India, in most of the countries,
majority of the population uses iPhones. According to Apple's new privacy policy,
it has become way more difficult for Facebook, to use people's data and show
ads. Because logically, Apple is expensive, the number of people who have
iPhones, they all have a high spending power. So, if you loose the data of Apple
users, you are missing out the inventory of an expensive product! And that's what
exactly happened with Facebook. Because of this privacy policy, in February 2022,
Facebook's revenue dropped by more than $10 Billion. And this brings us to the
third most important reason! And that is 'False Marketing'. In simple words, over-
commit and under deliver. In October 2021, when Mark Zuckerberg made
announcements of Meta, everyone was shocked, because everyone thought that
this is going to be the future. But, The level of graphics, user interface,
compatibility and connectivity that the Mark had promised, at the time of the
launch, it didn't turn out even 1/4th of that. And this backfired! I'll tell you, how?
In India, 5% people actively invest in stock market. But, on the other hand, In US,
58-60% people actively invest in stock market. So you see, in countries like India,
6. retail investors can't allow any stock to move too much! So in India, until
institutional investors pull put their money from a stock, there wouldn't be a
massive change in stock price. But in America, most of the American retail
investors, hold Facebook stock. And because of the quantity and trade volume of
retail investors, stocked dipped fastly! And offcourse, when so many retail
investors pull out money, then even the mutual fund companies, where the public
money is invested, they also pull out their money from there. Because, Mutual
funds have people's money, and mutual fund managers, don't want to loose
people’s money! So, in very simple words, as soon as Facebook announced its
results, retail investors and institutional investors, started their Facebook stocks.
And that is the reason, there is such a huge dip in stock price. And, if you look very
closely, revenue is also dropping. Due to which most of the investors don't have
confidence on Facebook. That's why, due to over commitment and under
delivery, people lost confidence in Facebook. As a result, the actual market
capitalization of company, has dropped from $1 trillion to $256 billions.
Thank you very much.